At the long-run equilibrium level of output, the monopolist's marginal cost will

a. exceed price.
b. equal price.
c. be less than price.
d. be less than marginal revenue.


C

Economics

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Special Drawing Rights are financial assets created by

(a) the World Bank. (b) the United National Development Program. (c) multinational corporations. (d) the International Monetary Fund.

Economics

A flat IS curve implies that

A) an increase in money supply will change output by a relatively small amount. B) a decrease in taxes will change output by a relatively large amount. C) changes in money supply will have large multiplier effects on output. D) A and B.

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Advocates of discretionary policy make which of the following criticisms of the economy’s “self-correcting” mechanism?

A. It is slow. B. It is not very reliable. C. It works only when supplemented by automatic stabilizers. D. All of these responses are correct. E. Options a and b only are correct.

Economics

Bank regulation differs from monetary policy, because:

a. Monetary policy is concerned with controlling and monitoring the conduct, performance, and condition of financial institutions, but bank regulation is concerned with changing the monetary aggregates. b. Regulation is concerned with changing reserve requirements, open market operations, and the discount rate, but monetary policy is concerned with changing the domestic interest rates. c. Regulation is concerned with changing domestic interest rates, but monetary policy is concerned with changing reserve requirements, open market operations, and the discount rate. d. Regulation is concerned with controlling and monitoring the conduct, performance, and condition of financial institutions, but monetary policy is concerned with changing the monetary aggregates.

Economics